Are you ready for a Mudra loan?
Four questions, a 100-point score, and a personalised list of what to improve. Built around the same DTI rules banks actually apply.
Check Your Eligibility
Recommended Category
Kishore
₹50,001 – ₹5,00,000
Estimated Monthly EMI
₹3,227
@ 10% p.a., 36 months
Key Factors
Age Requirement (18-65 years)
Age 30 is within the eligible range.
Indian Citizenship
Indian citizen — eligible.
Eligible Business Activity
Service is an eligible business category under PMMY.
Debt-to-Income Ratio
DTI ratio is 12.9%. Within acceptable limits.
Business Stage
New ventures are fully eligible under PMMY — no collateral needed for Shishu loans.
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Five things every applicant must meet
PMMY is designed to be inclusive. Most first-time applicants tick all five.
Indian Citizenship
Only Indian citizens can apply for Mudra loans. NRIs and foreign nationals are not eligible. Valid identity proof required (Aadhaar / Voter ID / Passport).
Age 18–65 years
Applicant must be at least 18 at application and not exceed 65 at loan maturity. Some banks have a stricter 60-year ceiling.
Non-farm Income Activity
Must be a non-farm, income-generating enterprise. Manufacturing, processing, trading, services, and allied agri (food processing, poultry, fishery, beekeeping) are covered.
No Active Default
Should not be a defaulter or wilful defaulter with any bank. Clean credit history significantly improves chances; CIBIL alone does not disqualify Shishu applicants.
Viable Business Plan
For Kishore and Tarun, banks expect a project report demonstrating financial viability, projections, and a repayment plan.
What to keep ready
Four bundles. Shishu loans need just bundle 1 and 2; Kishore & Tarun ask for all four.
Identity & address
- Aadhaar Card (mandatory for e-KYC)
- PAN Card
- Voter ID / Passport / Driving Licence
- 2 Passport-size Photographs
Business proof
- Udyam Registration Certificate
- GST Registration (if applicable)
- Shop & Establishment / Trade Licence
- Business address proof (rent agreement / utility bill)
Financial documents
- Bank statements (last 6 months)
- Income Tax Returns (last 2 years, if filed)
- Balance sheet & P&L statement
- Quotations for machinery / equipment
Project report
- Detailed Project Report (Kishore / Tarun / Tarun Plus)
- CMA Data (loans above ₹5 lakh)
- Business plan with revenue projections
- Market analysis & competition assessment
PMMY tiers side by side
| Feature | Shishu | Kishore | Tarun | Tarun Plus |
|---|---|---|---|---|
| Loan Range | Up to ₹50,000 | ₹50,001 – ₹5,00,000 | ₹5,00,001 – ₹10,00,000 | ₹10,00,001 – ₹20,00,000 |
| Collateral | Not required | Usually not | May be required | Typically required |
| Max tenure | 5 years | 7 years | 7 years | 7 years |
| Processing fee | Nil | 0.5–1% | 0.5–1% | 0.5–1% |
| Project report | Not required | Recommended | Required | Required |
| Target | Micro start-ups | Growing MSEs | Established MSMEs | Scaling enterprises |
The number banks actually look at
Debt-to-Income ratio (DTI) is the share of your monthly income that goes to EMIs. Below 40% is healthy; 40–50% gets extra scrutiny; above 50% usually needs you to clear something first.
Worked example
Earn ₹30,000/mo · existing EMI ₹5,000 · proposed Mudra EMI ₹4,000. DTI = 9,000 / 30,000 = 30%. Comfortably within range.
Eligibility questions
Who is eligible for a Mudra loan under PMMY?
Any Indian citizen aged 18 to 65 years who owns or plans to start a non-farm, income-generating micro or small enterprise is eligible. This includes manufacturing units, trading businesses, service providers, and allied agriculture activities. There is no minimum income requirement, and both new and existing businesses can apply.
Do I need collateral or a guarantor for a Mudra loan?
No collateral or third-party guarantee is required for Shishu loans (up to Rs 50,000). For Kishore and Tarun categories, some banks may ask for collateral or a personal guarantee depending on the loan amount and the borrower's credit history, but it is not mandated by PMMY guidelines. Tarun Plus loans (Rs 10-20 lakh) are more likely to require security.
Can I get a Mudra loan if I have an existing loan?
Yes, having an existing loan does not automatically disqualify you. Banks evaluate your debt-to-income (DTI) ratio to assess repayment capacity. If your total monthly EMI obligations (including the proposed Mudra loan EMI) remain below 50% of your monthly income, most banks will consider your application favourably. A lower DTI ratio strengthens your application.
What documents are required for a Mudra loan application?
Common documents include: Aadhaar card, PAN card, passport-size photographs, proof of business (GST registration, Udyam certificate, shop licence, or business address proof), bank statements for the last 6 months, and a project report or business plan. For Kishore and Tarun loans, banks may also ask for an income proof, ITR, and balance sheet.
Can women and SC/ST applicants get special benefits under PMMY?
While Mudra loans do not offer a separate interest rate subsidy for women or SC/ST applicants, these categories are given priority under PMMY. Many banks have specific schemes with reduced processing fees and faster approvals for women entrepreneurs. Additionally, women and SC/ST borrowers may be eligible for complementary government schemes like Stand-Up India or PMEGP that provide capital subsidies.
Is there a minimum CIBIL score required for Mudra loans?
There is no officially mandated minimum CIBIL score for Mudra loans. However, most banks prefer a score of 650 or above for Kishore and Tarun categories. For Shishu loans (up to Rs 50,000), banks are generally more lenient about credit scores since these are small-ticket loans with no collateral. A score above 750 significantly improves your chances and may help you get a lower interest rate.
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